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Xbox One Used Game Policy Reversal A 'Good Move' But Microsoft Still Needs To Justify The Price

Industry leaders approve of MicrosoftMicrosoft‘s policy reversals on the Xbox One, but the $499 price-tag may still be a problem.

In the days leading up to E3, Microsoft (NASDAQ:MSFT) revealed its new policies regarding used game sales and a required internet connection for its upcoming next-generation video game console, the Xbox One.

The handicapping of used game sales and the requirement to log in to the internet every 24 hours struck many as unfriendly to consumers, and especially lower-income consumers who might have poor internet connections.

Xbox One owners would be able to sell used games at the discretion of game publishers, and would have new lending restrictions on games—though these new restrictions came with the new ability to lend digital games, something currently not available on most platforms.

The new restrictions were grim news for game retailer GameStopGameStop (NASDAQ:GME) casting a shadow over the company’s big used-game business.

Then at E3, SonySony announced that it would make no similar policy changes. Used games would be handled the same as ever, and no internet connection would be required to play offline games, though a subscription to PlayStation Plus would be required for online gaming.

The crowd, quite literally, went wild:

Notably, Sony’s positive reception was for making no changes at all. Had Microsoft not already set the stage with new used game policies, there would have been no thunder for Sony to steal in the first place.

Still, Microsoft paid close attention to the fan and critical response, and one thing was undeniably clear: in this lap of the console wars, Sony was giving the Xbox One a run for its money.

Days later, Microsoft announced that it was reversing its policies entirely, stripping away the 24-hour online log in requirement, and reverting the used game and game-lending policy back to the status quo.

“I think consumers didn’t like their approach, so the fact they went back and listened to the consumers and gave them something different is a good move to ensure the new consoles [achieve] their potential,” Ubisoft CEO Yves Guillemot told GamesIndustry International.

“GameStop welcomes today’s announcement from Microsoft about changes in functionality for its next-generation console, the Xbox One,” the company said in a statement.

“This is great news for gamers and we applaud Microsoft for understanding consumers and the importance of the preowned market.”

For many consumers, this reversal may be too little, too late, however. For one thing, the Xbox One still clocks in at $499—$100 more than the PS4.

“If you do a focus group of a gazillion people and you show them two prices for two competitive products, 100 percent always prefer the lower price,” Activision CEO Eric Hirshberg told GamesIndustry International,going on to note that “Microsoft is going to have to win the hearts and minds and convince people that the higher price point is worth it, and that it provides really meaningful capabilities that will be meaningful to consumers.”

Part of that is convincing consumers that the required Kinect 2.0 is worth the extra cash. Sony opted to not include its own MoveMove motion sensor with the PS4 bundle, even though the new DualShock 4 controllers have built in Move capabilities, selling it as a $59.99 peripheral instead.

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Please stop bringing up backwards compatibility as if it’s a worthwhile feature that the majority of people will use across the entire span of a console’s lifetime. It’s much better that console makers focus on making their upcoming systems the best they can be than devoting time and money towards running old software.

when you are talking about the future of your console in terms of digital distribution being its primary revenue stream, and then you say all the digital purchases that people made will not be valid on the next console that sets a dangerous precedent.

Their justification is that their even with PS4 because it comes with the kinect which is a $100 value. I don’t want the kinect, I don’t want to spend $500, and I don’t want a deal equal to Sony I want a better deal. Xbox 360′s fair price is what made it the leading console and it’s a shame microsoft is too money hungry to see that.

Microsoft still sees value in the Kinect and they are confident that the Kinect will make for a better experience for the user in the long run. Kinda reminds me of Nintendo focusing their latest system around a tablet controller of questionable usefulness that costs a pretty penny to replace if broken. I expect Microsoft to put out their policies regarding warranty and repair once it gets closer to launch day.

That, and they want to make sure that game developers don’t waste money on implementing features for a peripheral that the large amount of the consumer base doesn’t/will not own. That makes some sense. It’s ultimately up to the developer whether the features they implement will be of any use beyond the standard controller, though.

And Eric Merlo makes a good point about new hardware just being plain expensive.

I don’t think guys really understand what is meant when Microsoft said they installed 300k servers dedicated to Xbox Live. I’ll try to elaborate. That means that gamers from all corners of the globe regardless of their connection will have a seamless connection. Not just that, but you can talk as loud as you want- it won’t harm the connection. Anybody can do the talking now that Kinect can just track and isolate the voices in the room and it’ll be as clear as guys with headsets. It’ll be an experience far greater and more compelling to have. And you won’t need a super internet speed to have it because nobody has to host anymore, the cloud does. Oh yeah…. NO MORE CRASHING BECAUSE THE HOST LEFT. If PS4 doesn’t give a similar or better experience people will definitely see why it’s better to have an Xbox One. Not to count them out, I just heard very little about the experience they wanna bring online.

Umm really Daniel? I’m pretty sure the 50 Million Xbox live users last year care. Oh and just in case you were wondering theres been 76 Million xbox 360′s sold. Which means over 65% of people with an Xbox care. Cause everyone experiences lag at some point. So you my friend, are the moron.